Palestine Incurs $50Bln Economic Losses in Two Decades

Official statistics reveal an increase in the Palestinian trade deficit, exceeding half a billion dollars. (Reuters)
Official statistics reveal an increase in the Palestinian trade deficit, exceeding half a billion dollars. (Reuters)
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Palestine Incurs $50Bln Economic Losses in Two Decades

Official statistics reveal an increase in the Palestinian trade deficit, exceeding half a billion dollars. (Reuters)
Official statistics reveal an increase in the Palestinian trade deficit, exceeding half a billion dollars. (Reuters)

Additional restrictions imposed on Palestinian development in Israeli-controlled parts of the West Bank cost the Palestinian economy an estimated $50 billion between 2000 and 2020, the UN development agency said Tuesday.

The United Nations Conference on Trade and Development (UNCTAD) said in report to the UN General Assembly that extra restrictions imposed within the West Bank's so-called Area C, which remains under full Israeli control, had cost $2.5 billion per year.

The report, titled “Economic costs of the Israeli occupation for the Palestinian people: The toll of the additional restrictions in Area C, 2000–2020”, estimates the cost of the additional restrictions at $2.5 billion per year.

It indicates that the cumulative cost during the two decades is equivalent to three times the West Bank GDP in 2020 and over 2.5 times the Palestinian GDP in the same year.

Area C of the occupied West Bank accounts for about 60% of the West Bank and incorporates all Israeli settlements. It is under Israeli civil and security control, the report noted.

Despite several UN Security Council and General Assembly resolutions that emphasize the illegality, under international law, of settlements and the acquisition of territory by force, they continue to grow and expand.

Under the 1993 Oslo Accords, the West Bank was split into three administrative divisions, with Area A controlled by the Palestinian Authority, Area B under split control and Area C remaining fully under Israeli control.

Area C, which is the only contiguous section of the West Bank and contains the most fertile land and valuable natural resources, was supposed to be gradually transferred to Palestinian jurisdiction, according to the accords, but that has not happened.

Instead, Area C is today home to around 400,000 settlers, with 70% of the land under their control and off limits for Palestinian development.

Meanwhile, Palestinian access to the remainder of Area C (30%) remains heavily restricted.

The report stressed that until the occupation is ended, foreign aid and donor support to the Palestinian people must be strengthened to avert future socioeconomic and humanitarian crises.

It underscored the importance of lifting all restrictions on Palestinian economic activity in Area C.

“Ending such restrictions would provide the Palestinian economy with a badly needed economic and natural resource base for developing their economy and reversing the current trend of deepening fiscal crisis and increasing socioeconomic deprivation.”

The report affirmed that ending the occupation of Area C of the West Bank and East Jerusalem is critical for the sustainable development of the Occupied Palestinian Territory because it will enable the Palestinian people to grow their economy several fold.

It indicated, citing different sources, that the occupying power provides generous incentives to settlers and entrepreneurs to facilitate industrial and agricultural ventures, which have encouraged hundreds of thousands of Israeli citizens to move to the subsidized settlements, where living standards are, on average, higher than in Israel.

According to the report, an array of restrictions imposed by the occupying power have constrained economic activities and the movement of people and goods in Areas A, B and C.

They include a ban on the importation of certain technology and inputs, a stringent permit regime, bureaucratic controls, checkpoints, gates, earth mounds, roadblocks and trenches in addition to the Separation Wall.

The report estimates the cost of these additional restrictions at 25% of the West Bank’s GDP and the annual contribution of these settlements to the economy of the occupying power at $41 billion or 227% of the total Palestinian GDP in 2021.

The report stressed that Palestinian access to all of Area C is necessary for the sustainable development of the Occupied Palestinian Territory and for the emergence of a viable, contiguous Palestinian State based on the two-state solution, in line with relevant UN resolutions.



Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)
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Iraq Oil Output Exceeds 5 million bpd

Majnoon oil field near the Iraqi city of Basra (Reuters)
Majnoon oil field near the Iraqi city of Basra (Reuters)

Iraq produces more than 5 million barrels of oil per day (bpd), Oil Minister Basim Mohammed told state news agency INA on Saturday.

According to Reuters, Iraq is pushing for a higher OPEC production quota as the economic fallout from the Iran war and new investment by oil majors increase pressure on Baghdad to boost output, potentially putting it at odds with the producer group.

The conflict has hit Iraq particularly hard, forcing major export cuts and depriving the state of oil revenue, which accounted for 88% of government income last year.


IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
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IMF: Any Slowdown in AI-driven Growth Would be Factor for Central Banks

IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)
IMF Managing Director Kristalina Georgieva speaks during the Annual Meetings Plenary at the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 16, 2026. (Photo by Lillian SUWANRUMPHA / AFP)

Central bankers around the world would need to consider any slowdown in AI-driven growth as they assess steps in their fight against inflation, International Monetary Fund Managing Director Kristalina Georgieva said on Friday.

Georgieva said concerns about dependence on the AI investment boom and high valuations were impacting markets around the world.

"Things are going up and down, and this is likely to continue," she told an audience at IMF headquarters in Washington, adding that the volatility would complicate the job of central banks at a time when risks to price stability had been growing.

A steep rout in technology stocks on Thursday rippled through markets on fears that ⁠the Democrats' victory ⁠in the US midterm elections would increase regulatory scrutiny of AI and slow the data center build-out, sending investors to the safety of bonds.

The political jitters are hitting an AI trade already on shaky footing due to worry about return on massive spending on AI-related infrastructure, with the meltdown spurring margin calls and spooking retail investors and hedge ⁠funds alike.

Georgieva said the AI investment boom was lifting growth in some countries, helping to offset a negative oil-supply shock triggered by the war in the Middle East, but it was also adding to inflationary pressures and financial stability concerns.

The IMF last month flagged significant growth and financial stability risks from a potential ending of the AI investment boom, among other factors, including a prolonged Middle East war. At the time, it warned that a steep drop in AI investment could lead to a sharp fall in asset prices, ultimately cutting global GDP ⁠by 1.1% ⁠by 2028, including a 1.8% drop in US output.

Georgieva did not repeat the downside forecast on Friday, but acknowledged the recent market volatility.

"Should there be a slowdown in the AI-driven growth impulse, it would need to be factored in as central banks assess the necessary steps in the fight against stubborn inflation," she said.

Democrats are planning to unleash a flood of new legislation targeting artificial intelligence systems and data-center development when they take control of the US Congress in January, Reuters reported on Friday, citing congressional aides and advocates.

That would mark a sharp shift from the Republican-led Congress, where lawmakers largely focused on promoting AI development and declined to pass legislation restricting the technology.


World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
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World Food Prices Dip in October, but Remain Higher Than a Year Ago

A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)
A worker carries loaves of bread for sale at a bakery in the capital city of Cairo, Egypt November 4, 2026. (Reuters)

World food prices edged lower in October as weaker import demand contributed to monthly declines in cereal, dairy and meat prices, but were still nearly 6% higher than a year earlier, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in international prices for a basket of food commodities, ‌averaged 133.9 points ‌in October, down from a revised ‌135.6 ⁠in September.

The index ⁠was 5.9% higher than a year earlier, but remained 16.4% below its March 2022 peak.

FAO's cereal price index fell 4.5% from September and was 12.6% lower than a year ago, as wheat and maize quotations declined. Wheat prices eased on weak import demand ⁠and improved production prospects, especially in Argentina.

"Expectations of ‌easing constraints on Black ‌Sea export flows added to the downward pressure on prices, ‌although continued disruptions to Black Sea logistics limited the decline," ‌FAO said in a statement.

Maize prices also eased after reaching a three-year high in September, pressured by the US harvest, expectations of ample supplies in South America and renewed ‌prospects of easing tensions in the Black Sea region.

Vegetable oil prices edged up 0.3%, ⁠as ⁠higher soybean and sunflower oil prices more than offset a fall in rapeseed oil prices.

Sugar prices rose 6.6%, their fourth straight monthly increase, to the highest level since December 2024, after rainfall disrupted harvesting in Brazil. They were now 28.8% above a year ago.

The dairy index fell 1.1%, as lower butter and cheese prices linked to ample supplies and subdued demand outweighed gains in milk powder.

The meat index declined 1.2%, while still slightly above its year-earlier level, as ovine and bovine meat prices fell.